Texas home sales soar, housing inventory declines in 2020’s third quarter
Texas REALTORS® releases 2020-Q3 edition of the Texas Quarterly Housing Report
The number of Texas homes sold from July to September 2020 increased nearly 19% compared to the same time frame last year, according to the 2020-Q3 Texas Quarterly Housing Report released today by Texas REALTORS®.
“The Texas real estate market’s resiliency, especially in the middle of a pandemic crisis, is nothing short of incredible, though our housing supply is still critically low,” said Cindi Bulla, chairman of Texas REALTORS®. “We are hard at work looking for the supply solutions necessary to keep our market healthy and make the American dream of homeownership attainable to every Texan.”
Home sales increased 18.4%, with 119,642 homes sold in the third quarter of 2020. Statewide, the median price increased 8.6% to $266,000. Of all the homes sold within the third quarter, 34.1% were priced from $200,000 to $299,999, the highest share of sales among all price-class distributions.
Jim Gaines, Ph.D., chief economist with the Real Estate Center at Texas A&M University, commented, “The Texas housing market experienced a strong push-through of demand from the second quarter into the third quarter. Active listings saw a sharp drop with many sellers hesitating to list their property in the middle of a pandemic. However, as the economy and employment numbers continue to recover, we anticipate end-of-year sales figures will be higher than 2019.”
Active listings declined 32.4% in Q3 to 71,569 listings. Texas homes spent an average of 52 days on the market, two days more than the third quarter of 2019.
Housing inventory in Texas declined 1.3 months to 2.3 months of inventory. According to the Real Estate Center at Texas A&M University, a market balanced between supply and demand has between 6.0 and 6.5 months of inventory.
Bulla concluded, “Although our real estate market remains strong, the data in this report shows there are still long-term implications regarding this housing shortage that need answers, and finding those solutions will remain a major focus for Texas REALTORS® at the state and local level for 2020 and beyond.”